It’s time to re-think single-sourced packaging strategies
Let’s face it, packaging supply chains right now are a disaster. Historically stable product lines like glass and resin suddenly have lead times extended, and many companies are finding themselves scrambling to avoid out-of-stock and hits to key supply chain/procurement metrics.
As we have enjoyed decades of stability in global supply chains, many companies focused on cost-reduction through consolidating spend. When supply chains are stable, this provides many benefits like reduced costs and stronger supplier relationships.
However, as many are now finding, a single-sourced strategy introduces significant risks in a global, interconnected world. When raw materials, logistics or production that affect key products shuts down, many companies are left unprepared and at-risk of not being able to get their product on shelf because they don’t have the packaging they need.
According to Gartner, “Supply chain executives overwhelmingly recognize the need to make their networks more resilient - defined as “the ability to adapt to structural changes by modifying supply chain strategies, products and technologies.” And 63% of surveyed supply chain executives believe that diversifying their supply base (multi-sourcing) is a key strategy to building resiliency and agility.
Here are a few thoughts on how to build a resilient packaging supply chain.
- Get your data centralized. With your data centralized, you can quickly identify where you’re single-sourced and make strategic shifts to a multi-sourcing strategy.
- Get your supply chain on a collaborative platform. Data is great. But managing processes through email and spreadsheets increases execution risk when your team is moving quickly. Make sure you enable your team with collaboration and visibility tools to mitigate execution risk.
- Automate your workflows. By standardizing workflows and having all stakeholders on the same page, you can effectively pivot your supply chain while mitigating risks to quality and on-time delivery.
